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Clubbing of rents received on irrevocable transfer to spouse

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 January 2018 One of my client is doing trading business and she also owns commercial buildings on which she receives rents
and comes under 30% slab and she wants to reduce her tax liability legally.

option 1
Can she she gift commercial buildings to her husband to reduce her tax liability ?
whether clubbing provisions applicable in this case ?
option 2
Can husband purchase the above property from his wife at market value and declare
rents received as his income ?
which option is better ? kindly advise and also precautions to be taken in this tax planning.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
04 January 2018 Option 1 clubbing provisions applicable.
Option 2 Yes option 2 is better but he should have sources to buy of his own.
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Querist : Anonymous

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Querist : Anonymous (Querist)
04 January 2018 thank you sir.
can he borrow from bank and purchase the property ?
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